Today’s HELOC & Home Equity Loan Rates: September 29, 2025

Home equity loans and home equity lines of credit (HELOCs) allow homeowners to tap into the value of their homes.

A home equity loan is a fixed-rate, lump-sum loan that allows homeowners to borrow up to 85% of their home’s value and pay that amount back in monthly installments. A home equity line of credit is a variable-rate second mortgage that draws on your home’s value as a revolving line of credit.

Both options use your property as collateral for your payments, which means your lender can seize your property if you can’t repay what you borrow.

$100K HELOC Loan Rates

Ideal for Medium-Sized Projects

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A $100K HELOC is suitable for more extensive renovation projects or other significant financial needs. Compare the rates and terms to find the best fit for your situation.

$250K HELOC Loan Rates

Access More Funds for Major Investments

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For larger projects or investments, a $250K HELOC provides the necessary funds with various LTV options. Explore these rates to determine the right balance between borrowing capacity and risk.

$500K HELOC Loan Rates

Maximize Your Borrowing Power

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If you have substantial equity in your home and need significant financing, a $500K HELOC offers a great deal of borrowing power. Evaluate these options to find the optimal rate and term for your goals.

Pros and Cons of a HELOC

PROS CONS
Lower interest rates compared to other loan types
HELOCs come with variable interest rates that fluctuate depending on several factors, which can make your monthly payments adjust with your interest rate at any given time
HELOCs let you access your funds as needed compared to a traditional loan that’s paid as a lump sum
When you take out a HELOC, the lender will use your property as collateral, which means you can lose your home if you fall behind on payments
If your HELOC meets IRS guidelines, your interest may be tax-deductible, but you must use the funds to purchase, build or improve a home
HELOCs can come with significant fees that range from at least 2% to 6% of your total loan costs fees
HELOCs can be an excellent option to consolidate your other debt payments into one monthly payment and boost your credit score
Borrowing against your home’s equity can be risky because you may owe more on your HELOC than your property is worth if your property value drops

5-Year Home Equity Loan Rates (60 Months)

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A 5-year term offers a shorter repayment period with typically higher monthly payments. These products are suitable for borrowers looking for a quicker payoff.

10-Year Home Equity Loan Rates (120 Months)

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With a 10-year term, borrowers can enjoy a balanced monthly payment while still building equity quickly. 10-year home equity loans are ideal for medium-sized projects or financial needs.

15-Year Home Equity Loan Rates (180 Months)

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A 15-year term provides lower monthly payments compared to shorter terms, offering more affordability while still progressing toward your financial goals.

20-Year Home Equity Loan Rates (240 Months)

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Offering longer repayment and lower monthly payments, 20-year home equity loans are suitable for larger investments and long-term financial planning.

30-Year Home Equity Loan Rates (360 Months)

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The 30-year term maximizes affordability with the lowest monthly payments. These options are best for substantial borrowing needs and long-term investments.

Pros and Cons of a Home Equity Loan

PROS CONS
Your interest rate will remain static over the life of your loan, giving you a consistent monthly payment amount
You must use your home as collateral to take out a home equity loan, which means you could lose it with too many missing or late payments
Your entire loan amount is distributed in one, lump-sum payment
Home equity loans have strict requirements that can make them difficult to qualify for
Unlike other fixed loan types, you can use your home equity loan funds for any purpose
You may have to pay expensive closing costs, including origination and appraisal fees
Interest paid on your home equity loan might be tax-deductible if you itemize your deductions
You could end up with an “underwater” loan, which occurs when you end up owing more than your home is worth

What Is a HELOC?

HELOC rates are tied more closely to banks than are first-mortgage rates, which tend to track the performance of the bond market. The Federal Reserve, which controls the interest rates that banks charge each other, has signaled to investors that it expects to raise those rates several times in 2022 and beyond.

How Does a Home Equity Loan Work?

A home equity loan is a lump-sum loan that allows you to borrow money by leveraging your home’s equity.

The maximum amount you’re allowed to borrow is based on how much equity you have in your home, up to the amount offered by that lender. These types of loans tend to have competitive interest rates since they’re secured loans. Your home is used as collateral to secure the loan, meaning if you miss or fall behind on payments, you could face foreclosure.

How Do I Calculate Home Equity?

You’ll calculate your home equity by taking your home’s current value – based on its most recent appraisal – and subtracting it from your current mortgage balance.

For example, say your home is valued at $500,000 and your mortgage’s outstanding balance is $250,000. This would mean you have $250,000 in home equity, and your loan-to-value ratio (LTV) would be 50%. If you’re looking for a home equity loan or line of credit, lenders usually only approve up to a certain LTV ratio. For example, some lenders require 80% LTV or less.

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